Det Norske hit by Revenue Drop

FPSO Petrojarl Varg Varg Field PL038 Photo Det norske'

Det Norske Oljeselskap ASA slumped to an operating loss in the first quarter on significantly lower revenue. The company reported a revenues of $ 205 (Q1 2015: USD 329) million in the first quarter. Production in the same period was 60,600 barrels of oil equivalent per day, while the realized oil price was $ 37 on average per barrel.

EBITDA for the quarter amounted to 129 (261) million, and EBIT was -23 (86) million, after an impairment charge of 38 (53) million dollars. The quarterly result was 32 (2) million, giving earnings per share (EPS) of 0.16 (0.01) dollars. Net interest-bearing debt amounted to 2,584 (1,965) $ one million as of March 31, 2016.

In April, the company received approval from the bank consortium for a change of loan terms. Bank Consortium in its reserve based lending facility ( "RBL") of 3.0 billion dollars and revolving credit facility ( "RCF") of $ 550 million has gone on a modification of the terms out in 2019.

"The quarter was characterized by stable operation with high production efficiency, good progress on development projects our commencement of drilling operations on the Askja / Krafla and two new acquisitions that increase the resource base of the company" , says CEO. Director Karl Johnny Hersvik.

Alvheim
Alvheim FPSO in the first quarter a production efficiency of the entire 99.3 percent. Affiliation project BoaKamNord have expected start in the second quarter of 2016 and Viper-Kobra development, which contains two discovery in the Alvheim area, is expected to produce first oil by the end of 2016 as planned.

Ivar Aasen
main activities of the Ivar Aasen project keeps fixed schedule both time and cost up to first oil in the fourth quarter of 2016. Construction of the topside in Singapore has now passed 98 percent completion and shipment is planned for the first week of June. Installation of topsides in the North Sea is planned to July 2016. Construction of residential quarters on Stord has passed 98 percent completion and shipment of Stord is scheduled in July 2016.

Johan Sverdrup
project is progressing as planned towards production start in the fourth quarter of 2019. The project passed a major milestone in February, when the first steel was cut for the construction of the drilling platform. In March started the drilling rig Deepsea Atlantic drilling of the first production well. It initiated action to remove bottlenecks in the project, aiming to increase production capacity in phase 1 to a higher level than the capacity it was designed for in the plan for development and operation ( PDO ) of 315-380 mboepd.

In March the Norwegian an agreement to acquire Noreco's Norwegian license portfolio, consisting of seven licenses on the Norwegian Continental Shelf, including a 20 percent stake in Gotha discovery in the Barents Sea. In April the Norwegian an agreement with Centrica Resources Norway AS to acquire the company's license interests in discoveries Frigg Gamma Delta and Rind. The portfolio consists of 30 percent stake in PL 442, PL 026B and PL 026 and includes operatorship in Frigg Gamma Delta.